It is supposed to start the level with all 4 hobbits (Frodo, Sam, Merry and Pippin, according to all walktrough tutorials on youtube), but I'm missing Merry and Pippin.

Also have found the similar problem on other forums but no answer. Is there any other solution?
Some ppl claims that their have all 4 characters. Maybe if i change ntsc/pal version, or maybe backup loader problem or?

Thank you Hielkenator,
I change IOS in cfg usb loader to 249 (base 56) and after that there are 4 characters.
Then restart Wii and choose back 250 (base 57) an again everything is fine. I'm not sure anymore but I can choose/change bewteen all 4 characters.
Before other two was greyed.

Not sure if that solve problem somehow, but it works now, I try to use base 46, because it says that this game need IOS 56 to play.